Q3.) Numeric (The options in parts (b), (c), and (d-2) are: "Project A,". "Project B,". "Project C,"

"Project A & Project B," "Project B & Project C," "Project A & Project C," "Project A,B,C" or "None.")

Problem - NPV & Payback In the table below, you can find the expected cash flows of three different projects: Year: 4 Project B 5,100 1,100 5,100 Cash Flows (dollars) 1 2 3 + 1,025 + 1,025 + 3,050 1,100 + 2,850 + 1,025 + 1,025 + 3,05 + 3,050 + 5,950 a. Calculate the payback period separately for each project. b. Which projects do you accept according to the payback rule, assuming a cutoff period of 2 years? c. Which projects do you accept according to the payback rule, assuming a cutoff period of 3 years? d-1. Calculate NPVs separately for each project assuming that the opportunity cost of capital is 11%. (Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to 2 places.) d-2. Select the projects that have positive NPVS. e. Is the following statement true or false? *Payback gives too much weight to cash flows that occur after the cutoff date." Project A Years Project B Years Payback period e. Is the following statement true or false! "Payback gives too much weight to cash flows that occur after the cutoff date." Project A Years Project B Yours Project Years b. Payback period Which projects do you accept according to the payback rule, assuming a cutoff period of 2 years? c. Which projects do you accept according to the payback rule, assuming a cutoff period of 3 years? d-1. Calculate NPV separately for each project assuming that the opportunity cost of capitais 11% d-2. Which projects have positive NPVS? "Payback gives too much weight to cash flows that occur after the cutoff date. True or false? e